Order date – 31 March 2023

Key Pointers :

• The applicant, M/s SEETHARAMNJANEYA DAL AND FRIED GRAM MILL, is engaged in the business of pulses and dalls.
• They won a tender to supply 25,000 MTs of red gram dall to the Andhra Pradesh State Civil Supplies Corporation Limited (APSCSCL) for distribution under various schemes.
• The applicant seeks an advance ruling on whether the supply of 1 kg packing red gram dall and secondary packing in a 50 kg bag to the APSCSCL as per the design and label given by the corporation with a prior agreement attracts GST.
• The authority notes that the applicant is supplying the red gram dall to the corporation in 1 kg packaging and secondary packaging in a 50 kg bag as per the directions issued by the corporation.
• The first and foremost condition of taxability is that the commodity should have been a pre-packed commodity which means that the commodity is not packed for any specific known buyer. In the Instance case the applicant is packing the commodity at the behest and at the specific instructions of the buyer, ie., AP State Civil Supplies Corporation Limited. It is clearly evident from the package that the AP State civil have made very clear instruction as to the color, theme, transparency and the details to be printed on the package. Thus the commodity is packed for retail sale for any buyer who may purchase at a later point, but it is packaged to a specific buyer. Thus the first and foremost condition of taxability is not satisfied. Hence there is no question of taxability of the commodity in the instant case.
• Hence, the authority held that the supply of 1 kg packing red gram dall and secondary packing in a 50 kg bag to the APSCSCL as per the design and label given by the corporation with a prior agreement does not attracts GST.